Preserve and Improve the Condition and Affordability of Existing Housing
Existing housing is typically the most affordable, and preserving it is more cost-effective than building new. Segments of existing affordable housing are at risk of being lost to rent or price increases or deterioration. For example, project-based Section 8 units were built about 40 years ago and often have deferred maintenance. About 7,800 of the 30,000 Section 8 units in Minnesota have contracts that will expire sometime between 2023 and 2027, when they could convert to market-rate rents. Fortunately, we have had great success in renewing contracts and maintaining affordability. Minnesota also has over 210,000 rental units affordable to households with incomes at or below 50% of AMI that are naturally occurring affordable housing (NOAH) without government subsidies and income/rent restrictions, typically because they are older, lack amenities and are in need of repairs. About 25% of the state’s owner-occupied homes have a value of less than $250,000. While affordable for many residents, these homes often need repairs, and the state’s housing stock is getting older. Emerging issues include making homes climate-resilient, losing affordable inventory to investor owners, building the capacity of rental property owners who are preservation-minded, rising interest rates and staying on top of evolving preservation needs.
Key Metrics
Number of existing rental units affordable to households with an income at or below 50% of the statewide median income (coming soon)
Number of units with project-based rental assistance (coming soon)
Number of existing homes valued at $300,000 or less (coming soon)
Actions
